Summary Report Template for Financial Statements
ACC 232 - Financial Accounting 1
Arizona State University
Introduction
Accounting is one of the most important factors in business. "Accounting is an information
system that provides reports to users about the economic activities and condition of
business" (Warren, Et al), in other words accounting is the means by which a
manager/owner is able to track the economic status of their business and assist them with
making better financial decisions for the future.
Process
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
During this project I took on the role of a recently hired entry-level bookkeeper for a newly
established service business. The duties of my role consisted of tracking all business
transactions for the entire month of June using the data the owner provided. All the data
was to be entered using an Excel Spreadsheet that consisted of the financial statements, to
include, general journal, ledger account, trial balance, balance sheet, income statement, and
closing statements; by the end, the project was to be reported back to the owner. Double
and even triple checking any of the calculations was essential because even one missed
number can make all the difference in whether we have a net income or net loss.
Financial statements are described as accounting reports that provide information about
recorded and summarized transactions (Warren, Et al). They assist the company in being
able to see where the money is going and how well its doing where it is currently at. In the
order prepared, Income Statement is described as summary that details how much money
was spent as well as how much was made. Secondly, is the statement of stockholder's
equity which gives information on how much the company is worth during a specific point in
time (sometimes is stated in months, quarters, or years). Thirdly is the balance sheet that
provides a list of assets, liabilities, and the equity of the business. And lastly, the statement
of cash flows lists all the payments that were given.
Financial Statement Analysis
My first task for the company was filling out the general journal entries for the month of
June with the information that was provided to me by the owner. Once that was done, I
began working on the financial statement to be able to note the net income, assets, and
liabilities. For the month of June there was a total revenue of $5,525 with a total operating
expense of $2,960 bringing the total net income to $2,565. Once you divide the total sales
by the net income, we get an approximate sales percentage of 43%. While filling out the
different charts it is important to make sure the final totals are equal to each other. If one
number is greater than the other, we know we made a mistake somewhere along the way
and we must start over.
Referring back to the financial statements, the company is making good financial decisions.
Since the company is making a profit, they are able to better take care of any liabilities they
have and can continue to maintain or even expand their assets.
Internal Controls
In total there are five elements of internal control: Control environment, Risk assessment,
Control procedures, Monitoring, and lastly Information and communication. Although they
all put in practice important considerations one of the ones, I believe, to be the most
concerning is monitoring. Cash payments are amongst the easiest transactions to go missing
simply because there doesn't always have to be a record of the transaction. Employees
working the register can cancel the transaction midway and keep the payment and there
wouldn't be any way to really know that that money is missing. Another scenario would be if
only one person is creating the deposit. The employee could simply change the amounts
received and make the deposit to whatever amount they wish
Monitoring makes it so that there is a better traceability of when money is missing, and
having more than one person assisting with either a deposit or counting down registers at
the end of the shift could make it so that there is an accountability for the accountant. As a
business grows so do the amount of employees working. Before hiring a candidate, the
company should practice running background checks and reaching out to past employers as
well as any professional references that may be provided. These simple tips can assist in
weeding out any employees with any past history of any fraudulent acts.
Looking to the Future
Fixed assets are described as being "long-term or relatively permanent assets such as
equipment, machinery, buildings, and land" (Warren, Et al), in other words these can be the
building in which you are working out of and the physical "things" you use to work with in
your place of business. When documenting such assets, you would start by debiting the
equipment and crediting cash. With time, "long-term assets" will undergo maintenance as
well as repairs and such will be reason for revision in depreciation. Documenting of the
depreciation would consist of removing the value of the asset and determining the value
lost.
Accounting begins to change with added inventory because this is an increase of assets and
liabilities to the company. To determine whether to use of FIFO or LIFO, details of the
product need to be considered such as the shelf life and demand. FIFO (first-in first-out) is
usually the more popular method because it makes sure that inventory isn't sitting around
on a shelf or a warehouse for longer than it has to. Typically, supermarkets tend to follow
this method due to inventory coming in with Use-By dates or Expiration dates. LIFO (last-in
first-out) is majorly used for product with a longer shelf life in specific markets.
